The Federal Housing Finance Board will hold a public hearing March 10 on pilot programs by the Federal Home Loan banks of New York, Atlanta, and Chicago to underwrite mortgages and other development loans with member banks and thrifts.

Under the programs, the Home Loan banks will provide more than $1 billion in combined financing.

The board approved the pilot projects last year after member institutions of the Federal Home Loan Bank System complained that federal rules limit the amount they can lend to one borrower and thus block them from financing large community development projects.

However, some thrifts oppose the pilot programs because they allow the Home Loan banks to compete with many of their own members and expose themselves to unfamiliar levels of credit risk.

"More than anything else," said board spokesman William A. Glavin, the hearing "is to explain things and hear people out. It could affect future proposals that come before the board."

The hearing will be held in the Office of Thrift Supervision amphitheater at 1700 G St. NW, in Washington.

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